It is very unlikely that an asset would never sell. We will aim to sell the asset at market value, however if the asset remains un-sold we will write to all syndicate owners to detail the options regarding continuing to hold or reducing the price in order to ensure a sale.

In a bear trust syndicate, the beneficiaries are the true owners of the asset, even though the asset is held in the name of the trustee. The trustee holds the asset purely on behalf of the beneficiaries, without having any discretionary power over it. The beneficiaries retain full beneficial ownership, and the trustee is simply a legal custodian until the asset is formally transferred.

This is an illiquid asset however due to the structure there will be a 'bulletin board' style 'member marketplace' where members of a syndicate can list their share. You should assume that it will not be possible to exit your investment until another member takes ownership of your share within the syndicate. The asset will be periodically revalued. As a syndicate member you are expected to vote on whether to retain or realise the asset. Once sold, any profit will be distributed among the members. Additionally, every time an offer to purchase the car is received from a serious potential buyer with a price at or above the valuation, this will be brought before the syndicate members for a vote. In order for the vote decision to be legitimate, a minimum of 15% of the shareholders must vote. A 50.1% majority is required to start the process. If the decision is taken to realise, there are a number of different outlets for potential sale, including private sale, auction, and the potential for other syndicate members to purchase the asset outright. This will all be overseen by the The CarCrowd.

A syndicated trust refers to a financial arrangement where assets, typically shares or property, are held by a trustee on behalf of a beneficiary without the trustee having any discretionary powers. The beneficiary is the true owner, and the trustee merely holds the asset in their name until it can be transferred to the beneficiary. In the context of a syndicate, multiple people or parties may come together to pool their resources to buy or hold an asset under a trust structure. The trust ensures that the syndicate members (or beneficiaries) retain ownership, while the trustee is responsible for managing the asset until it's transferred to the rightful owners. This structure is commonly used in arrangements to streamline the holding of assets for a group.

Syndicate members will pay a Curation Fee to cover the sourcing, provenance checking, valuation and transport of the vehicle. The Curation Fee is a one off fee and is fully documented within each syndicate agreement. An Asset Under Management Fee (AUM) is taken annually via GoCardless to cover insurance, storage and maintenance for the lifetime that the asset is held in trust and is again full detailed in each syndicate agreement. Upon funding, all members must will receive an instruction email to set up the GoCardless annual subscription for the AUM. A Success Fee equal to 10% of the appreciation will be charged by TheCarCrowd upon exit but only if the syndicated asset rises in value. This means we are aligned to the best insterest of the syndicate members to find the fastest and higest appreciating assets. Exact breakdown of fees for each opportunity will be detailed in the individual syndicate agreement for each asset(s).

Taking a stake within an private syndicate is not a regulated activity in the UK and as such thecarcrowd are not regulated by the Financial Conduct Authority. We follow all UK crowdfunding regulations and appoint independant administrators to provide additional piece of mind. Values of assets can go down as well as up and your capital is at risk.

Assets such as classic cars are Capital Gains Tax free in the UK. International users should consult legislation specific to their locality. The CarCrowd cannot give tax advice or comment on individual tax circumstances. If in doubt, please consult an independent tax resource or a tax professional.

Once an asset is sold, TheCarCrowd will arrange for all necessary taxes and fees to be paid by the syndicate. Holdings will then be distributed among the syndicate members.

In the event that the asset fails to fully fund within 90 days, all invested capital will be returned to the investors with no fees or charges.

Although not guaranteed a beneficiary can typically sell their interest in a syndicate, but the process depends on the specific terms of the trust deed or agreement governing the syndicate. Since the beneficiary is the true owner of their share of the asset, they generally have the right to sell or transfer their interest. The CarCrowd will look but can not guarantee to facilitate this. It's important to review the trust agreement and consult with legal or financial advisors to ensure the proper procedures are followed when selling out of a syndicate.

All members need to be 18 or over and will be required to pass KYC and appropriateness checks prior to becoming part of a syndicate. Members now need to be classified as 'high net worth' or 'sophisticated' in order to be able to syndicate into any CarCrowd offering. International customers will have to pass manual KYC which can take up to 10 working days. If you are an international customer please email support@thecarcrowd.co.uk for details on the documentation required.